Protection tech agency Mercury Methods broadcasts CFO exit, strategic overview

(Reuters) – Mercury Methods Inc on Tuesday introduced the exit of finance chief Michael Ruppert and mentioned the protection expertise agency had initiated a overview of strategic options.

The information comes a yr after activist hedge fund Starboard Worth LP, which owns about 7.33% of Mercury, despatched an open letter to the board asking it to remove the shareholders rights plan that was adopted in December 2021.

Individually, activist investor Jana Companions had mentioned that it will push Mercury to think about choices for its enterprise, together with a possible sale.

“There may be no assurance that any transaction will likely be accredited or consummated,” Mercury Methods, which develops and manufactures laptop {hardware} and software program merchandise for the aerospace and protection trade, mentioned in a press release on Tuesday.

“The corporate doesn’t intend to reveal developments regarding this course of except and till the board has accredited a selected settlement or transaction or has terminated its overview.”

Mercury Methods had a market capitalization of $2.84 billion as of Tuesday’s shut.

Citi and Goldman Sachs & Co. LLC are serving as monetary advisors to Mercury.

The corporate additionally reported second-quarter income of $229.6 million, in contrast with $220.4 million a yr in the past.

It mentioned CFO Ruppert was stepping down efficient Feb. 17 to just accept a chance at a non-public firm and that Mercury has began a search course of for his alternative.

(Reporting by Kannaki Deka in Bengaluru; Enhancing by Devika Syamnath)